Connect with us
Active Currencies 14281
Market Cap $2,492,397,626,373.70
Bitcoin Share 52.05%
24h Market Cap Change $-0.42

Binance reassures users by topping up SAFU to $1 billion

2min Read

Share this article

The crypto-market turmoil triggered by FTX’s solvency concerns has got the whole industry in a blanket of FUD. Everyone from influencers, traders, and investors are scrambling to take their funds off exchanges and putting them into cold storages.

The unexpected developments in FTX’s case, from the CEO reassuring users of their funds’ security to withdrawals getting halted, is a rather uncomfortable reminder of the early days of the bear market. Especially when unknowing customers used to lose hundreds of millions.

Exchanges scramble to reassure users

In a bid to avoid a bank run-like situation, major exchanges have made announcements to calm down users. Earlier today, Coinbase CEO Brian Armstrong tweeted a detailed thread outlining the steps taken by his company to ensure the security of user funds.

Soon after inking a non-binding acquisition deal with FTX, Binance CEO Changpeng Zhao took to Twitter, calling for enhanced transparency among crypto-exchanges. This was followed by a commitment to implement proof-of-reserve in the spirit of full transparency.

Binance SAFU topped up to $1 Billion

Within a few hours of committing to full transparency, Binance CEO CZ announced that the exchange’s Secure Asset Fund for Users (SAFU) had been replenished, taking its holdings to $1 billion.

SAFU is an insurance fund that was set up by Binance back in 2018 to protect its users’ funds in case of an emergency. SAFU is funded by a percentage deducted from trading fees on the exchange and is made up of Bitcoin, BNB, and Binance’s stablecoin BUSD.

On 29 January 2022, the SAFU was valued at $1 billion. However, the events that transpired in the following months brought down the fund’s value. Today’s top-up includes $700 million worth of BUSD and BNB and $300 million worth of BTC.

Users on Twitter welcomed this move by Binance, in addition to the advocacy of proof-of-reserves. “Stay SAFU” has become a common warning by CZ in times of volatility and unrest.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.